Lotte's Discount-Store Overhaul
May Give It Edge Over Shinsegae

By

Jeongjin Lim

Updated May 8, 2007 12:01 a.m. ET

SEOUL -- It may be time to shop for Lotte shares again.

A year ago, the momentum in the South Korean retail space seemed to belong to its rival Shinsegae, with stock of Lotte Shopping steadily underperforming. Lotte, which controls nearly half of Korea's department-store market and boasts operating margins of 11% to 12% in that business, waited too long to move onto the discount scene.